For buyers who are searching for luxury homes or homes in competitive real estate markets, jumbo loans can be an attractive mortgage option. Government-sponsored enterprises, Freddie Mac and Fannie Mae, have set loan amount limits for conforming loans, but when buyers are looking for more expensive homes, they may need to borrow more than these set loan limits permit. Jumbo, or nonconforming, loans will allow homebuyers to exceed the loan limits to finance primary residences, vacation homes, and investment opportunities. Eliminating the need for more than one conforming loan, homebuyers can finance expensive properties with competitive interest rates.
Since they are not backed by a government entity, jumbo loans often come with stricter borrower requirements, including higher credit scores and down payments, lower debt-to-income ratios, and more valuable reserves. If you are in the market for a jumbo loan for a home in Savannah or surrounding areas or are interested in exploring your home loan options, feel free to contact Coastal Custom Mortgage today.